We claim:
1. A computer-implemented method for managing risks and reducing costs for insurance companies, via program instructions stored in a memory and executed by a processor, the computer-implemented method comprising:
creating a profile corresponding to each of one or more customers of one or more insurance companies;
computing an individual score corresponding to each of the one or more customers;
associating each of the one or more customers with one or more pre-defined groups of customers;
monitoring activities of each of the one or more customers;
updating the computed individual score of each of the one or more customers based on the monitored activities;
updating a pre-defined group score based on the monitored activities and the updated individual score of each of the one or more customers associated with the group; and
facilitating one or more existing systems to compute insurance premium of each of the one or more customers based on at least one of: the corresponding updated individual score, the updated score of the one or more groups corresponding to each of the one or more customers and the monitored activities of the one or more customers.
2. The computer-implemented method of claim 1, wherein the profile corresponding to each of the one or more customers of the one or more insurance companies is created by the one or more customers using existing accounts on one or more social media websites.

3. The computer-implemented method of claim 1, wherein the profile corresponding to
each of the one or more customers of the one or more insurance companies is created
by the one or more customers by providing details comprising primary email address,
secondary email address, new password, name, phone number, policy number, address
and date of birth.
4. The computer-implemented method of claim 1, wherein the individual score
corresponding to each of the one or more customers is computed based on the created
customer profile and one or more parameters.
5. The computer-implemented method of claim 4, wherein the one or more parameters for computing individual score comprise number of referrals in low, medium and high risk categories, total number of referrals, frequency of referrals, referral fitment, number of claims, number of frauds, number of reported fraudulent activities and number of policy enrolments by a customer.
6. The computer-implemented method of claim 1, wherein the one or more customers are associated with one or more pre-defined groups based on one or more criteria comprising demographic factors, type of insurance product and risk profile of customer.
7. The computer-implemented method of claim 1, wherein the monitored activities of each of the one or more customers comprise number of referrals in low, medium and high risk categories, frequency of referrals, referral fitment, number of claims, number of frauds, number of reported fraudulent activities and number of policy enrolments.
8. The computer-implemented method of claim 1 further comprising the step of facilitating the one or more customers to view one or more profiles of possible connections present on one or more social media websites and create one or more trusted groups.

9. The computer-implemented method of claim 8 further comprising generating a
risk score for the one or more profiles of the possible connections present on the one or
more social media websites.
10. A system for managing risks and reducing costs for insurance companies, the
system comprising:
a customer portal configured to create a profile corresponding to each of one or more customers of one or more insurance companies;
a member management module configured to:
compute an individual score corresponding to each of the one or more customers;
associate each of the one or more customers with one or more pre-defined groups of customers;
monitor activities of each of the one or more customers; and
update the computed individual score of each of the one or more customers based on the monitored activities;
a group management module configured to update a pre-defined group score based on the monitored activities and the updated individual score of each of the one or more customers associated with the group; and
an analytical engine configured to communicate with one or more existing systems to facilitate computing insurance premium of each of the one or more customers based on at least one of: the corresponding updated individual score, the updated score of the one or more groups corresponding to each of the one or more customers and the monitored activities of the one or more customers.

11. The system of claim 10, wherein the profile corresponding to each of the one or more customers is created by the one or more customers using existing accounts on one or more social media websites.
12. The system of claim 10, wherein the profile corresponding to each of the one or more customers is created by the one or more customers by providing details comprising primary email address, secondary email address, new password, name, phone number, policy number, address and date of birth.
13. The system of claim 10, wherein the individual score corresponding to each of the one or more customers is computed based on the created customer profile and one or more parameters.
14. The system of claim 13, wherein the one or more parameters for computing individual score comprise number of referrals in low, medium and high risk categories, total number of referrals, frequency of referrals, referral fitment, number of claims, number of frauds, number of reported fraudulent activities and number of policy enrolments by a customer.
15. The system of claim 10, wherein the one or more customers are associated with one or more pre-defined groups based on one or more criteria comprising demographic factors, type of insurance product and risk profile of customer.
16. The system of claim 10, wherein the monitored activities of each of the one or more customers comprise number of referrals in low, medium and high risk categories, frequency of referrals, referral fitment, number of claims, number of frauds, number of reported fraudulent activities and number of policy enrolments.

17. The system of claim 10 further comprising a social media interface module
configured to facilitate the one or more customers to view one or more profiles of
possible connections present on one or more social media websites and create one or
more trusted groups.
18. The system of claim 17 further comprising a risk profiling module configured to
generate a risk score for the one or more profiles of the possible connections present on
the one or more social media websites.